Public Works and Public Housing Ministry, in charge of infrastructure development, has slashed Rp 517.7 billion (US$38.6 million) from the total of Rp 104.69 trillion in the original 2017 state budget.

The move came after President Joko “Jokowi” Widodo issued Presidential Instruction No. 4/2017 on efficiency requiring ministries and other government institutions to cut their spending, particularly for less urgent projects or programs.

“The only directorate general [under the ministry] spared from the cuts is Bina Marga because they need to build the infrastructure for Asian Games in 2018 in Palembang, as well as for the World Bank meeting in Bali,” Public Works and Public Housing Minister Basuki Hadimuljono said on Thursday.

(Read also: State budget deficit may increase to 2.60 percent: Minister)

He said the cuts would mostly come from funds allocated in the state budget for goods procurement, work trips, meetings, honorariums, operational costs of offices and vehicles.

As of Thursday, the ministry had disbursed 31.57 percent of its total budget, compared to 30.83 percent of disbursement in the same period, last year.

Previously, Finance Minister Sri Mulyani Indrawati said the state budget deficit might increase to 2.60 percent, up from the initial target of 2.41 percent, from the amount that had been allocated in the state budget. (bbn)